Trend Continuation Indicator

TrendContinuation Indicator

The TrendContinuation indicator is a tool for identifying potential long and short setups in trending markets. It combines three elements: candlestick pattern recognition, RSI filtering, and a higher-timeframe EMA.

EMA filter: The EMA defines the main trend.

• If price is above the EMA → only long setups are considered.
  
• If price is below the EMA → only short setups are considered.
  

RSI filter: The RSI is used to avoid trades against momentum, with customizable overbought and oversold levels.

Candlestick signals: When conditions align, the indicator prints a green arrow for a possible long setup or a red arrow for a possible short setup.

Settings

• RSI Length: default 14
  
• Overbought/Oversold Levels: default 60 / 40
  
• EMA Length: default 60
  
• Timeframe for EMA: must always be set to a higher timeframe than the chart you are on (e.g., using a 15m EMA on a 2m chart).
  
• ATR Candle Multiplier and Swing Low Lookback Bars: optional parameters for fine-tuning.
  

Important Notes

• The EMA timeframe setting is critical: if it is not higher than the current chart timeframe, the indicator will not work correctly.
  
• This indicator should not be used as a standalone system. It is intended as an additional tool that can support trade decisions when combined with other analysis methods.
  
• Users are encouraged to test different settings and timeframes to find what works best for their own strategy.